CU CBS Inward Investment v9

8/3/2019 CU CBS Inward Investment v9

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cardiffinvolved

communication

businesses

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culture

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Policy

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caPital

skill

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services

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exPerience

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interaction

Performance

brand

inward

investment

marketing

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activities

oPPortunities

coordination

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discussions

selling

wales:

the role of agencies

in attracting inward

investment

comPetition

10575 CU CBS InwardInvest Report v9.indd 1 20/01/2012 12:23


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This study set out to explore how the

agencies which promote inward investment

operate in Wales, with a particular ocus on

Cardi. The research involved ace-to-ace,

semi-structured interviews, ocusing on the

workings o the agencies. This inormation

was supplemented with questionnaires sentto frms and to politicians who were unable

to take part in ace-to-ace interviews.

The research highlighted a number

o problems in terms o structure and

organisation across the agencies within the

Cardi city region.

It appears that there is some consensus on

what is wrong and what needs to change but

that there has been little clear action to date.

The number o agencies involved in attracting

inward investment in the region creates a

complex picture. One agencys work naturally

overlaps with another. This report shows,

however, that there is a lack o coordination in

the promotion o services. Although some o

the agencies have wider remits than others,

and some do work closely together, there

needs to be more structured coordination to

better use resources.

1. working between agencies:there is a lacko coordination between dierent agencies.Competition between some agencies creates

unhealthy eects.

2. the brand: the perception amongststa o diering messages within the same

geographical area has resulted in conusion over

who does what and where remits o certainagencies cease and others begin. There is also

the danger o sending conusing or conictingmessages to potential investors.

3. limited resources: in some agencies, limitedbudgets prevent large scale strategic marketing

and result in shorter, one-o campaigns. Thistargeting, particularly in terms o sectors, has

some advantages but results in uncertainty in

what to do with potential investments rom

outside key sectors.

4. imPetus for change:there is evidence osome coordination between public and privatepartners in promoting Wales as a destination or

inward investment but there is acknowledgmentthat some aspects o the process need to

change and that improvements can be made.

Recommendations

development of a stRongeR

Welsh BRand:both Cardi and Wales wouldbenet rom a stronger and more coherentbrand image which is supported by all agencies

and allows a greater coordination o the use o

resources.

impRoved cooRdination:there needs to be aclearer remit or individual agencies but also an

improved structure whereby joint projects canbe executed and contacts shared.

consistency in policy Beyond taRget

sectoRs: the Welsh Government needs to

develop a consistent policy, supported by all

agencies, regarding attraction o investment

rom outside key sectors. This is about improvingresponsiveness to enquiries made by rms

which do not t into sector teams.

executive summary

selling Wales: the role of agencies in attracting inward investment2

key

findings



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Cardiff Business sChool and Cardiff Business PartnershiP

contents

3Cardiff Business sChool and Cardiff Business PartnershiP

4

6

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12

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16

17

background: fdi attraction in wales

the research

findings

interaCtion Between agenCies

ComPetition Between agenCies

marketing of wales/Cardiff

misCommuniCation

the Case of sCotland

conclusions

recommendations

references

annex

r&d

aggregate numBer for fdi inflows

introduction 4



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This report assesses the agencies (and attendant

inrastructure) charged with attracting inward

investment in the Cardi City Region. Since theamalgamation o the Welsh Development Agency

(WDA) with the Welsh Assembly Government

(now the Welsh Government) in 2006 there hasbeen a uid support structure. This report aims to

understand the role o dierent inward investmentagencies, how they work and how they interact.

The study was carried out by conducting in-depth,semi-structured interviews with those working in

agencies, the Welsh Government and companies.

Questionnaire and secondary data were alsoevaluated. This report presents a picture o the

structures based on the experience o those doing

the job rather than the ormal organisational

structure. While the goal o this work is not topresent a trend analysis o global Foreign Direct

Investment ows, some background data on the

region are included to give a representation o itscurrent inward investment perormance.

The work was carried out by Cardi Business

School on behal o the Cardi Business Partnershipduring May 2011 to October 2011. All interviews

were condential to ensure that respondents elt

comortable giving their honest opinions on thecurrent structures and practices.

Attracting inward investment is one objective o an

economic development authority. New rms entering a

region create economic churn; this rejuvenates ideas andbrings much needed capital to local rms. How this task is

undertaken by governments, agencies, and/or individuals

is not a precise science and the academic or policyliterature reports little consensus on the correct approach.

From an inward investment promotion perspective, Wales

has undergone a marked change in the last decade. In2006 the Welsh Development Agency (WDA) merged

with the Welsh Government: this merger led to the

retirement o the WDA brand and the introduction o aWelsh Assembly Government (now Welsh Government)

brand or inward investment, International Business Wales

(IBW). Since this date a number o agencies, which had

been operating during the time o the WDA, have takena greater role in attracting inward investment, particularly

rom the rest o the UK and Europe. It must be noted

that other agencies were involved in inward investmentattraction during the time o the WDA, but were very much

in supporting roles. The Welsh economy, in the 1990s andearly 2000s, was seen as a major player in the European

regional development arena, attracting 15% o all oreigninvestment coming into the UK during the early 1990s1.

The high prole Oxord Intelligence report is compiledeach year on a given sectors investment strategies. In

2011, a study o biotechnology, pharmaceutical and

medical technology companies worldwide examined

the role o economic development agencies in assistinginvestment. The studys credibility is not in doubt with in-

depth company interviews carried out at Chie Executive

Ofcer, Chie Financial Ofcer and Senior Vice President

level, providing the vital corporate view. A key ndingwas that even in 2011, the WDA was still the second most

recognised development agency brand in Europe, a quite

startling nding given its non-existence since 2006.

It is thereore important to evaluate how well Wales has

done in attracting inward investment since the closure othe WDA.

introduction

to the research

BaCkground:

inward investment

attraCtion in wales

1 tt://.ts.mt.k//m201011/mst/m/t//15.tm




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wales and the uk in the inward investment game

table 1: Percentage of uk inward investment Projects** won(excluding london)*Source: uKTi and Fdi MarKeTS FroM The Financial TiMeS** ThiS iS new inveSTMenTS.


Welsh and global inward investment

ows have seen a steep downturn

over the last decade. What has beendisappointing or Wales is that there

appears to have been a continuous all

in levels since 2003. There is a urtherconcern or Wales; this is the improving

perormance o other regions in the UK,particularly Scotland, whose activity

during the late 90s was ar below Wales'but has now improved to lead the UK

(outside London).

I the gures are considered in terms

o overall inward investment projects

won, Scotland has become the number

one ranked region in the UK (excludingLondon). At the same time Wales has

gone rom number two in the UK in

2003 to second rom bottom in 2010.Table 1 shows Welsh perormance

compared to all regions.

Some background needs to be givenwhen contrasting the perormance

o Wales with other regions. Figures

published by the Welsh AssemblyGovernment (WAG 2010) suggest

that the number o "oreign owned

enterprises active in Wales" is smaller

than that in any English region. Therewere around 1000 in 2007, rising to 1100

in 2009 and alling back to 1000 in 2010.

They employed around 139,000 people

in 2010, 11,000 ewer than in the peakyear, 2009.

2003-04

2005-10

av % 8.5

av % 9

rank1

rank1-

scotland

2003-04

2005-10

av % 3

av % 3.3

rank6

rank10g

south west

2003-04

2005-10

av % 2.5

av % 3.7

rank8

rank7i

east anglia

2003-04

2005-10

av% 4.5

av% 5

rank4

rank3i

west midlands

2003-04

2005-10

av % 7.5

av % 3.5

rank2

rank9g

wales

2003-04

2005-10

av% 6.5

av% 6.8

rank3

rank2i

north west 2003-04

2005-10

av % 3.5

av % 3.7

rank6

rank5i

north east

2003-04

2005-10

av% 2

av% 3.7

rank9

rank6i

yorkshire & humber

2003-04

2005-10

av % 3.5

av % 3.5

rank8

rank8-

east midlands

2003-04

2005-10

av % 4

av % 4.3

rank5

rank4i

northern ireland



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The aim o the analysis was to

interview key personnel rom

all the agencies involved ininward investment attraction

to the Cardi city region.

It became clear that there

is a delineation o controland activity. Thereore the

interviews needed to be

undertaken across agenciesat dierent spatial levels in

order to establish why certaintasks were taking place. Table

2 gives a prole summary othe respondents involved and

Figure 1 shows the relationship

between the agenciesoperating within the Cardi

city region.

the research


15

12

6

5

key Point

method

lack of communication

interview

Practitioner*

key Point

method

misinformation

interview / Questionnaire

firm

key Point

method

consistency in communication

interview / Questionnaire

government / council

key Point

method

lack of resource

interview

Policy imPlementation*

welsh government

ukti

ibw cardiff and codePartment of economy

and transPortcaPital wales

cardiff council

table 2: Profile of resPondents

*SoMe oF TheSe reSpondenTS are no longer worKing in The agencieS, buT were in ThoSe roleS

during The period (2004-2011).

Figure 1: agency STrucTure

* agencieS have been coded a-g For The purpoSeS oF conFidenTialiTy

** arrowS repreSenT coMMunicaTion FlowS idenTiFied by reSpondenTS.



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attraCtinginward investment

ComPetitionamongst agenCies

Since the 1960s and the true advent o globalised

multinationals, there has been critical debateamongst scholars and practitioners alike on

how best to attract inward investment. During

the early 90s, Europe saw vast numbers o rmsmoving into nations to take advantage o the

growing wealth o the trading bloc. The impacto inward investment on local economies has

been studied in some depth with the notableworks o Hill and Munday (1992), Blomstrom

et al (2000) and Drifeld (1999) identiying the

impact o rm spillovers on local development.With these advantages o inward investment

accepted by politicians, many governments

concerned themselves with developing inward

investment riendly policies. During the early 90s,rms location decisions appeared to be driven

purely by economic actors, with winning regions

oering the lowest possible cost base throughboth tax incentives and grant schemes (Bellak and

Leibrecht, 2005).

During the early 90s Wales was seen as a highlysuccessul region in attracting inward investment

- its low cost base and English speaking work

orce were seen as critical actors in its success(Cooke and Morgan, 1998). As relative operating

costs began to rise the rms once ocking to the

country began to leave. They were drawn rst to

Eastern Europe. Over the last decade, the growtho China and India as power houses o low cost

business has meant developed regions in Europe

have had to compete even harder to attract rms.

Today, policies to attract inward investment intodeveloped nations vary by locality yet there are

some common practices identied by Guimon

(2009) with a strong ocus on highly skilled workorces and local amenities. As a result, it has

been accepted that marketing o place plays

an important role in attracting investment indeveloped nations, over and above tax incentives.

With large numbers o regions and countries all competing or inward

investment, intense competition has arisen between agencies. With somuch to gain, pressure has been put on governments (and economies)

to be as competitive as possible. This pressure is a double edged sword as

although it can lead to efciency and productivity improvements, too muchpressure can generate a so called race to the bottom. Here nations trying

to reduce wage bills and oering more competitive (expensive) packageso support can eectively produce poor welare outcomes. Charlton (2003)

provides a useul ramework to understand this competition or inwardinvestment.

The matrix describes the associated consequences o dierent types o

inward investment strategy. For example, i a region attempts to take an

investment rom where it is naturally more efcient, the overall economywill suer while a smaller area may benet (top let corner). Although the

original matrix allows comparisons between regions it is also possible to use

it to analyse investments within the same region. I one agency attemptsto oer incentives over and above another agency, the result is a loss o

overall welare o the region (bottom let corner). This competitive analysis

o inward investment suggests that while some competition is healthy, toomuch can create substantial welare losses.


investment Poaching

domestiC welfare gain?

international welfare

loss?

healthy comPetition

domestiC welfare gain?


gain?

beggar thy neighbour

domestiC welfare loss?


loss?

winners curse

domestiC welfare loss?


gain?

Figure 3: charlTon'S FraMeworK



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PerCePtion of ComPetition Between agenCies: Cardiff vs wales

In some cases we are encouraged to passover the es o contacts to agency B, thisis done as they are seen as the strongerand have more resources and experience.The probem is that rms do not want

that, they just want one port o ca or adeaings, switching between agencies doesnothing except conuse those invoved.

We need to make ourseves visibe and

I mean visibe in every sense o the word,we need to be so easy to contact and

communicate [with] on a daiy basis that

rms can reach us a the time. The present

system has created too many sios, this

means rom the outside it ooks ike we dont

speak to each other and that we are not on

the same page, the probem is not that, the

probem is that we were tod to operate inthis manner.

We were ooking to deveop a sma projectin Waes. We had been having productiveconsutation with agency C but were thentranserred to agency B. the deaings wehad were dicut, we ended up having toamost start rom scratch, expaining whatwe were ooking to do .. in the end this wastaking up too much time, we coud not aford

to hang around, we instead chose to go toNewcaste.

We are more than happy to work with others.Over the course o the ast year there hasbeen a process o evauation o services andwe accept that things coud be done better. Inan idea word those who are good at doing

something shoud concentrate on that, thatway we buid experience and knowedge.

This view shows the internal complexity and the politics involvedin operational decisions. It appears that there are numerous

scenarios where this has happened and each time it reects an

ingrained notion about how an agency should operate rather

than what is best or the client (the rms) or Wales. It must also benoted that not all those involved are so rigid with their operations

and some are more open to developing better coordination o

services to improve overall perormance:

Poor interaction has bred competition between agencies.

Competition can be seen as positive in some cases but not to the

detriment o the overall goal. It is difcult to gauge the level ocompetion. A number o respondents indicated that there were

signicant issues when it came to cultivating contacts received.

There is a view that once initial relationships are ormed the "handholding" job ends and some agencies are expected to withdraw,

yet there is a signicant belie that this approach does not yieldthe best results:

When this was put to agency C there was an acknowledgment o

the mistake and an acceptance o the act that the current system

needed adjusting and currently creates more complexity or the rm.

This viewpoint was also expressed by other agencies and reects a

more complex underlying structure. For example, rm 1, which was

looking to invest in Wales, was working with one agency but got

passed to another and was given inaccurate inormation conictingwith what the rst agency had told them:



10/20


This one respondents view was shared in some shape or orm by

a number o respondents: however ew wished to go into detailabout the WDA. It seemed to be a contentious subject or any o

those involved in inward investment work.

Although criticism was levelled at the WDA many respondents

elt that the marketing o Wales has been less eective since its

merger into the now Welsh Government.

There was again a consensus among all agencies that Wales

(during the late 90s and early 2000s) had established a boldimage internationally, but that in recent years this brand had

become less prominent and had lost value. This concept o brand

was raised by a number o the respondents, who have since let

their posts but who questioned what had happened to the oldWDA brand:

There was one exampe around the time o the Ryder

Cup, we had put a sizeabe advertisement into a North

American trade pubication. When we got a copy o

the pubication ater the competition another advert

appeared on the page opposite rom a oca authority

in another part o Waes. I am a or competition

but there must be a ine, whereby when advertising

gobay we are a seen to be puing together not

puing apart.

I think that the WDA had a ot o thingswrong with it at the end, in particuar the

structure, it was too boated, just too big.However the brand was sti worth a ot, Ihave been a around the word and I stihear companies taking about the WDA. Inact I woud suggest the brand is sti wortha ot, so ets use it.

Our marketing has been in a processo transition over the ast number omonths. There has been some scae back

rom initia panned action and that hasresuted in an about ace turn. Dont getme wrong, it is not that we have notbeen trying to attract inward investmentbut there has been a ot o efort onattracting certain types o investment.

marketing of wales/Cardiff

This view o selective attraction is shared by a number o the

agencies but many ound that this approach was causing a greatnumber o problems in terms o marketing. All agreed that ocus

was important when dealing with limited resources but some

suggested that too narrow a ocus meant that marketing wasineective.

Another area o concern is that respondents in dierent agenciessaid that previously there had been overlaps in advertisements,

with dierent agencies promoting dierent aspects o Wales/

Cardi in the same publication.

There was a consensus that inward investment activity is

marketing activity. This includes the marketing o general

locations, marketing o individual cities, and o Wales. To attract abusiness to any location, it is essential to portray the best aspects

o what the place has to oer and importantly that it be seen as

a good place to live. Divisions lie between respondents in how to

communicate this image.

This study has ocused on the Cardi city region, but two o the

agencies involved in the research (A and B) are both nationaloperators. There is a very clear message rom agency B that Wales

has not been marketed well over the last two years. There is anadmission that Wales has been seen as being closed or business

and an acknowledgment that other regions o the UK, notablyScotland, have taken advantage o this.



11/20


Communication was a topic o much concern or respondentsand was touched on in almost all discussions, even those related

to other subjects such as interaction or marketing. It must be said

that communication issues were ound both between agenciesand within the external community the agencies work with, that

is prospective investors in Wales.

When looking rst at ormal communications betweenagencies there is a clear divide between the larger and smaller

agencies. Many respondents said that there is one directional

communication, reecting the protective nature o some.For example, the strategy o agency E contains details o on-going

discussions and collaborative activities. When questioned aboutthis the agency concerned said that presently this was only one

direction interaction.

In terms o indirect communication, that is general

communication between all those involved, there was little

similarity between agencies. Some had regular updates on the

other agencies work, while others were ar more independentand had ew i any dealings with the others.

i t k t s t msmmt t t sms t mst t.

S 2005 t t tt tt tm, stmt s t t t ttt, m s t tks t t.

i sk t t Swd St wst dmt a k

t ws m s tk t t mt t s, s

t stt ts m. w s ts ? Msmmt k mmt, st t t , m mtt

st k tt.

This view has been expressed by other respondents who

acknowledge a lack o communication taking place and its eect

on external communications.

Communication comes up again in other contexts, primarily in

terms o miscommunication o both policy and oering. Authors

contacted a number o companies which have either investedin the Cardi city region or which were considering investing.

The experiences o companies were very dierent dependingon agencies, the sector they were coming rom, and the

investment size. Overall there was a great deal o variability in the

communications that took place.

Some rms described the great service they had and the direct

line to the people that can make decisions. This positive response

was rom an SME who was coming to Wales. They were alsooperating in one o the Welsh Government's target sectors:

This experience was not shared by a rm operating outside thetarget sectors but o a similar size and larger investment than that

o the rst:

misCommuniCation

Going orward we need to pan better, there is a need or

a more joined up approach to ink together services and

to et each other know what the other is doing. There is

no point in not sharing inormation, a we are doing is

wasting our time shing in the same pond. To this point

we have strugged to get meaningu communication

between ourseves and agency D.

Everything went we, we had good contact right rom the start,

[and] there was a singe port o ca who deat with the process. Wewere ofered a great dea o support in terms o the operationa side omoving to [the ocation]. We were ony ooking at the Wesh site duringthe process as two o our key contacts are aready ocated in the area.Having ony visited Waes once or twice I thought it was very useuto get oca insight, ony probem was the ength o time it took to getthrough the processes but other than that I cant compain.

To be honest it was conusing, we deat with agency Bto begin with, it was dicut to get some answers towhat we thought were simpe questions. We spoke atength to the contact we were given and ater a numbero emais and phone conversations we were passed toagency A. The most annoying thing was that one did notte the other our u situation; we were given diferentinormation by one group over the other. We aso seemedto get tanged up in some interna issues, we kept gettingredirected and brought around the houses. We are not aarge rm, we dont have ots o staf deaing with this, it

was me, [and] I got rustrated with the ack o progress sothought we shoud move on.

This view highlights the signicant internal conusion that exists

around the notion o sectors. The miscommunication and

misinormation regarding the policy is rie. One respondent madethe comment:

I you are in computer game design what sectorare you in, creative industries or ICT?

Others too expressed the view that there was some lacko communication on how to prioritise inward investment.



12/20


2000 20042002 2006 20082001 20052003 2007 2009

A number o individuals

contrasted the poor

perormance in Wales with therelative success that Scotland

has had in the recent past. It is

useul to look at the Scottish

case to put these commentsinto context. Existing data on

Scottish inward investment

attraction have been examinedto show trends over the

course o the last eight years.Respondents comments

on the work o SDI (ScottishDevelopment International)

have also been analysed.

There are two sets o data tocontrast. First is the type o

inward investment actuallybeing attracted. To this end this

research contrasts the gures

on R&D investment. This ishigh value activity associated

with the greatest economic

spillover to the wider economy.

The second measure is theaggregate numbers in terms

o actual projects that have

chosen to invest.

the case of scotland

inward

investment,

wales v sCotland

5

10

15

20

0

9

7

34

8

10

12

16

9

14

2

1

2

25 5

12

6

3

number of r&d inward investment Projects

*auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)

% of inward investment Projects against uk total

*auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)

2000 20042002 2006 20082001 20052003 2007 2009

12

10

8

6

4

2

0

10

9

11

9

8 8

6

10

6 6

2 2

3 3

55

7

9

7

9wales

key

scotland



13/20


14/20


This report has analysed the views o

those who are or have been involved

in attracting inward investment to

Wales. It has looked across multiple

agencies with dierent remits to try

and piece together the inrastructure

that exists in Wales at the present

time. There is a consensus that

change needs to happen; all agenciesacknowledged this and would

welcome it. The market or inward

investment has shited dramatically

in the last 10 years. In the last fve

in particular, with more proactive

strategies by development agencies

across the UK and Europe, the need

or more targeted and intensive

marketing has become greater.

Wales has some key assets at its disposal and there

is valuable experience and expertise in all o the

agencies currently operating in the Cardi cityregion but, at the moment, it appears that these

agencies are greatly ragmented and disjointed.

There is a lack o cohesion in operational and

strategic coordination o services. Some agencieshave done very impressive jobs given the limited

resources available to them. An example o this is

the work o agency C, which has been developing ascheme whereby successul Welsh business people

are recruited to promote the area.

There appears to be some difculty with theoverarching brand o Wales, with dierent agencies

saying dierent things. There is a continual pressure

to attract inward investment and yet there is noclear coordination o activities.

The Welsh Government has undertaken a number

o reviews and reorganisations over the last ewyears but, given the devolved agencies' activities,

there needs to be a greater emphasis on joining up

services.

The sector approach adopted by the WelshGovernment has also been adopted by the

other agencies and they are actively seeking toencourage investment rom particular sectors.

However, given the specic nature o these

sectors, one agencys work can oten overlap withanothers. This duplication o campaigns does not

reinorce the message as there is little coordination

to make sure the correct targets are being met.

There is also the problem o competition between

agencies. Presently this has created a divide

between some o them and a result is a lack o

resource sharing and duplication o enquires.Respondents recognise that there is too much

emphasis put on a limited number o sectors and

so have suggested that there needs to be moredone to attract inward investment in general rather

than just specic targets. At a Cardi city region

level, issues around ragmentation particularly interms o marketing might be resolved by closer

joint project work or through a reconguration o

existing resources.

conclusions



15/20


The evidence in this report indicates

that there are some signifcant

shortcomings in the current structures

in place in the Cardi city region to

attract inward investment. This reports

in-depth approach has allowed those

doing the job today to express their

thoughts and concerns over the

present inrastructure.

It is recommended that there should be greater

coordination o services. One option would

be that a single agency link together activitieswhere possible, grow synergies where they exist

and then put in place plans to exploit them. This

could be done by an existing agency with an

extended remit.

One o the most signicant issues identied in

the report is the outside worlds perception o

Wales competitive brand image. In order orany investment to come to Cardi or Wales it

needs to be seen as an attractive place to be. A

more proactive marketing campaign designed

to let global rms know what Wales has to oer,both in terms o skills and in terms o location,

is required. To date the brands o Wales and

Cardi have been communicated too weakly,with dierent agencies each trying to ocus

on separate components. This ragments theoverall message. It is recommended that a single

coherent brand should be adopted. This neednot mean dismantling agencies but it would

encourage them all to y the same ag.

Previous approaches by Wales, notably during

the late 90s, had a greater coherence and

consistency in brand messages. These produced

a well understood and recognised 'brand' orWales (the WDA brand is still well recognised

years ater it was disbanded) and this helped

attract large amounts o inward investment.It is recommended that a review o the current

situation takes place and that steps are taken toaddress the issues identied.

The nal recommendation is that in any

reorganisation within the Welsh Government's

economic development team there shouldbe some provision or the support o inward

investment rom outside the key sectors.

It became clear rom the report that certainsectors which do not t into the Governments

key sectors are currently being treated in a

subsidiary manner. This needs to be addressed

to both maintain the brand image o Wales andto encourage economic development.

future research

Attracting inward investment will continue

to be important in the coming years and,with continued global development, more

competition will exist. It is important that Cardi

and Wales have a strong brand recognisable

across the world. Future research could examinethe actors which are important in developing a

strong brand or inward investment.

recommendations



16/20


Bellak, C. and Leibrecht, A. (2005) Do

low corporate income taxes attract

FDI? Evidence rom eight Central and

Eastern European countries, University o

Nottingham Research Paper 2005/43.

Blomstrm, M., Kokko, A. and Globerman, S.

(2000), The determinants o host country

spillovers rom oreign direct investment: a

review and synthesis o the literature, in Pain

(2000).

Charlton, A. (2003) Incentive Bidding

or Mobile Investment: Economic

Consequences and Potential Responses,

OECD Development Centre Working Paper

No. 203 (Formerly Technical Paper No. 203)

Cooke, P. and Morgan, K. (1998) The

Associational Economy: Firms, Regions and

Innovation (Oxord University Press, Oxord).

Hill, S., and Munday, M., (1992) The UK

Regional Distribution o Foreign Direct

Investment: Analysis and Determinants,

Regional Studies, 26 (6): 535-544.

Pain, N. (2000). (ed.), Inward Investment,

Technological Change And Growth: The

Impact O Multinational Corporations On

The UK Economy, Palgrave Press.

Wells, Louis T. and Wint, Jr. Alvin G. (1990)Marketing a Country - Promotion as a Tool

or Attracting Foreign Investment, Foreign

Investment Advisory Service occasional

paper No. FIAS 1.


references



17/20

17Cardiff Business sChool and Cardiff Business PartnershiPCardiff Business sChool and Cardiff Business PartnershiP 17Cardiff Business sChool and Cardiff Business PartnershiP

annex 1 - new inward investment, uk and wales

wales

key

uk

uk ranking

Percentage

9.2

6

2005-06

new jobs

uk uk

34,077 36,526

9.3

4

2006-07

new jobs

8.3

6

2007-08

new jobs

6.4

4

2009-10

new jobs

6.2

7

2008-09

new jobs

ukwales

3,743 45,051

ukwales

2,185 35,111

ukwales

3,431 53,358

inward investment -new jobs 2005/06 - 2009/10

Source: uK Trade & induSTry

noTe: (1) analySiS baSed on Secured

projecTS, aS per uKT&i eligibiliTycriTeria

wales

3,132

wales

3,379



18/20


table 1: foreign direct investment across the uks nations and regions (by number of Projects)

(*) includeS london Source: ernST & youngS european inveSTMenT MoniTor

Source: uKTi daTa

2000

281

55

48

17

39

35

27

27

15

20

10

574

6%

Region

SOUTH EAST (*)

SCOTlAND

WEST MIDlANDS

NORTH

NORTH WEST

Wales

SOUTH WEST

YORKSHIRE & HUMBER

EAST ANGlIA

NORTHERN IRElAND

EAST MIDlANDS

ToTal

Waless %

2004

242

64

46

50

28

35

22

24

25

16

11

563

6%

2001

168

35

31

11

20

19

9

23

16

21

17

370

5%

2005

287

33

43

49

27

13

20

17

30

18

22

559

2%

2002

169

25

17

34

10

27

31

15

18

13

10

369

7%

2006

379

62

49

31

37

16

23

14

28

17

29

685

2%

2008

342

53

37

37

51

35

29

22

30

19

31

686

5%

2003

169

39

32

46

33

42

28

25

5

10

24

453

9%

2007

410

69

54

42

26

22

9

16

29

26

10

713

3%

2009

346

51

51

39

37

20

32

42

19

25

16

6783

3%

ToTal

2,793

486

408

356

308

264

230

225

215

185

180

5,650

4.7%

3uKTi t ss tt uK stmt 20092010 s 1,619. eiM uKTi ft mts t t a d s t mts m.



19/20


table 2: inward investment new jobs over the last ten years

2000-01 2001-02

6.3% 11.3%

7 1

wales

4,520

uk

71,488

wales

3,872

uk

34,087

2002-03 2003-04

11.8% 15.9%

3 1

wales

4,083

uk

34,396

wales

4,064

uk

25,463

2006-07 2007-08

9.3% 8.3%

4 6

wales

3,379

uk

36,526

wales

3,743

uk

45,051

2008-09 2009-10

6.2% 6.4%

7 4

wales

2,185

uk

35,111

wales

3,431

uk

53,358

2004-05

6.5%

9

wales

2,593

uk

39,592

2005-06

9.2%

6

uk

34,077

wales

3,132

key new jobs ranking against the uk's 12 geograPhic areasyear wales uk Percentage



20/20

rePort authors

andReW cRaWleyis a Research Fellow at Cardi

Business School working with Cardi BusinessPartnership. He has been involved in publishing

reports on sector analysis and regionaleconomic issues within Wales. His research

interests lie in industrial economics, spatial andregional economic analysis.

max mundayis Director o the Welsh EconomyResearch Unit at the Cardi Business School and

Proessor o Economics. He has been involved

in research projects that have examined the

development o the Cardi economy and thedevelopment o key sectors in the city area.

Rick delBRidge is Associate Dean or Research

and Proessor o Organisational Analysis atCardi Business School and a Senior Fellow

o the ESRC/EPSRC Advanced Institute o

Management Research. His research interestsinclude the organisation and management o

innovation. He is co-author oThe Exceptional

Manager(Oxord University Press).

aCknowledgements

In preparing this report we

are very grateul to all thosewho took part in interviews

and who responded toquestionnaires.

ContaCt detailsDr. Andrew Crawley

Tel: +44(0)29 2087 5079

Email:

[email protected]

Cardi University

Aberconway Building

Colum DriveCardi

CF10 3EU

UK

deSign: www. blacKSheep.inFo

sellingwales:

the role of agenciesin attracting

inward investment

Documents

CU CBS Inward Investment v9